Should I buy Cisco Systems stock in 2025? Complete Guide for UAE Investors

What is Cisco Systems?

How much is the Cisco Systems stock?

The price of Cisco Systems stock is declining this week. As of now, Cisco Systems (CSCO) trades at $63.05, reflecting a 24-hour change of -$0.29 (-0.46%) and a strong weekly gain of +9.96%. The company’s market capitalisation is $249.68 billion, with an average 3-month trading volume of 23.33 million shares.

Cisco’s price-to-earnings (P/E) ratio stands at 25.73, and the annual dividend yield is 2.60%. The stock’s beta is 0.89, indicating lower volatility compared to the broader market.

Investors in the UAE may find stability in Cisco’s global leadership and consistent growth, supported by solid fundamentals.

Our full analysis on the Cisco Systems stock

Over the past three years, Cisco Systems (NASDAQ: CSCO) has delivered robust financial results, marked by increasing revenues, strategic expansion, and consistent outperformance against analyst expectations. By coupling a thorough review of these fundamentals with a proprietary, data-driven blend of market signals, technical analysis, and peer benchmarking, we have identified key value drivers and developing momentum surrounding the stock. So, why might Cisco Systems stock once again represent a strategic entry point into the technology and digital infrastructure sector in 2025?

Recent Performance and Market Context

Cisco Systems’ share price has enjoyed a strong upward trajectory in 2024 and into 2025, culminating in a current price of $63.05 as of May 29, 2025, within proximity of its 52-week high at $66.50. The stock’s performance over the past year is especially noteworthy, delivering a remarkable +36.83% return, with six- and one-month gains of +6.49% and +9.96% respectively. This resilience is amplified by a healthy market capitalization exceeding $249 billion and an average daily trading volume above 23 million shares—a clear mark of sustained investor interest.

The broader macroeconomic and technological context adds weight to the bullish narrative:

• Digital acceleration: Global demand for networking, cloud, and hybrid solutions remains robust, underpinned by digital transformation across sectors in the UAE, MENA, and globally.
• AI and security spending: Enterprises and governments are intensifying investments in cybersecurity and AI-enabled infrastructure, strengthening the outlook for industry leaders such as Cisco.
• Cost of capital: A stable US macro environment and signs of a soft-landing scenario provide an attractive backdrop for quality stocks with strong cash generation like Cisco.

Positive recent events—most prominently the acquisition of Splunk and the outperformance in Q3 2025, where earnings and revenue handily surpassed consensus—continue to catalyze interest. Cisco’s proactive return of capital to shareholders through both dividends (2.6% yield) and share buybacks further reinforces market confidence.

Technical Analysis

Cisco’s technical structure is steadily constructive. Key indicators support a bias toward further appreciation:

• RSI (14-day) near 64: This positions CSCO firmly in neutral-to-bullish territory, indicating persistent buying interest while avoiding overbought extremes.
• MACD: While signals are mixed, the formation leans positive and aligns with the broader uptrend; short-term crossovers validate ongoing accumulation phases.
• Moving averages: Over half (53.57%) of short- and medium-term moving average signals are bullish, suggesting reinforced support for the existing trend.
• Support and resistance: Strong price floors exist in the $60-$62 range, with resistance targets at $66.50 (current 52-week high) and a historical barrier near $64.25. A decisive break above these levels could open new territory and attract additional institutional flows.

Short- and medium-term momentum remains favorable, indicating the stock may be entering a refreshed upcycle—potentially catalyzed by upcoming catalysts and recently strong fundamentals.

Fundamental Analysis

Cisco’s most recent quarterly results further underscore the company’s formidable positioning:

• Revenue: Q3 FY2025 revenue advanced to $14.1 billion, reflecting 11% year-on-year growth.
• Earnings (EPS): GAAP EPS of $0.62 (up 35% YoY) and non-GAAP EPS of $0.96 (up 9% YoY), both above consensus forecasts.
• Segment performance: Core networking saw 8% growth; security soared +54%, collaboration expanded 4%, and observability advanced 24%. This demonstrates multi-vector growth across high-priority verticals.

Crucially, Cisco now boasts a forward revenue guidance for FY2025 in the $56.5B–$56.7B range with non-GAAP EPS guided at $3.77–$3.79, embedding both conservatism and upside potential.

From the perspective of valuation:

• P/E Ratio: At 25.73, it remains compelling relative to the sector’s growth-to-value leaders, balancing premium multiples with impressive cash flow.
• Dividend and buyback: With a 2.6% yield and aggressive repurchase program ($1.5B in Q3 2025), Cisco ensures continuous shareholder remuneration.
• Structural advantages: Cisco’s dominance in networking, a diversified portfolio spanning security, collaboration, and observability, and a long-standing global brand add stability and future growth leverage.

This combination of accelerating revenues, inherent profitability, and justified valuation multiples provide a solid base for renewed optimism.

Volume and Liquidity

Cisco’s trading activity remains one of its defining features, with an average daily volume of over 23 million shares. This robust liquidity:

• Signals enduring market confidence and institutional participation.
• Supports dynamic price discovery and efficient entry/exit execution—crucial for both long-term investors and active traders.
• With nearly all of its 3.96 billion shares constituting public float, price movements can fairly reflect evolving market sentiment and underlying value narratives.

Such liquidity ensures that Cisco’s valuation remains responsive both to company-specific catalysts and major sector trends—potentially accelerating momentum at key inflection points.

Catalysts and Positive Outlook

Multiple powerful catalysts are converging:

• Artificial intelligence (AI) infrastructure: Cisco’s Q3 2025 saw AI infrastructure orders surpass $600 million, rapidly closing in on its $1 billion annual target—ahead of schedule. This positions Cisco at the heart of the upcoming enterprise AI buildout.
• Splunk acquisition: The recent integration of Splunk—a leader in data analytics and security—delivers a faster-than-expected positive impact on both revenues and order growth. It fortifies Cisco’s transition toward high-growth, high-margin software and subscription models.
• Security: Revenues in Security jumped 54% year-on-year, reflecting Cisco’s evolution into a cybersecurity powerhouse.
• Innovation initiatives: Acquisitions such as SnapAttack (threat detection engineering), expanded strategic partnerships, and product launches in the cloud and observability spaces further enhance the company’s competitive moat.
• ESG and global expansion: Positive momentum in new realms—such as sustainability, an increasing footprint in EMEA (+8%) and APJC (+9%), and continued capex from large webscale clients—all underscore the company’s commitment to staying ahead of digital and regulatory trends.

Macro and sector-wise, the ongoing digital transformation, rising AI infrastructure spending, and increasing dependence on secure, reliable networking globally—especially in tech-forward geographies like the UAE—make Cisco exceptionally well-positioned.

Investment Strategies

CSCO’s current technical set-up and upcoming catalysts provide several compelling arguments for various investor profiles:

• Short-term traders may see opportunity in the technically solid support ($60-62) and the momentum toward the upper end of the resistance band ($66.50). A breakout above resistance could trigger renewed upside on volume.
• Medium-term investors are well-placed to capitalize on expected positive earnings print, further integration of Splunk, and a strong pipeline in AI, cloud security, and new product domains. The company’s steady dividend and share buyback program also add defensive merit.
• Long-term investors could benefit from Cisco’s evolution into a modern digital infrastructure leader—the pivot to services and security, reinforced brand equity, robust cash generation, and a diversified global client base enable compounding returns even in volatile markets.

Strategically, positioning at these current levels—near technical lows and ahead of significant business catalysts—seems to represent an excellent opportunity to harness both value and growth angles. Investors seeking diversified technology sector exposure may find Cisco’s risk/reward profile particularly attractive at this stage of the cycle.

Is it the Right Time to Buy Cisco Systems?

In weighing Cisco’s recent momentum, technical positioning, and strengthened fundamentals, the case for renewed interest in the stock is highly compelling. Standout quarterly execution, rapidly growing exposure to secular AI and cybersecurity drivers, and a disciplined capital allocation strategy underpin consensus analyst targets of $69–70 per share—a 10% upside from current levels.

With robust liquidity, a powerful innovation engine, and clear evidence of sustained operational excellence, Cisco appears to be entering a new bullish phase—meriting serious consideration by investors looking to capitalize on transformative trends in global technology and digital infrastructure.

For market participants in the UAE and across the region aiming to combine income, growth, and resilience in their portfolios, Cisco Systems seems well-positioned to deliver on all fronts. In light of these dynamics, the stock may offer an excellent opportunity to participate in the next phase of digital infrastructure and AI-driven growth.

How to buy Cisco Systems stock in the UAE?

Buying shares in Cisco Systems (CSCO) online is now a straightforward and secure process when using a reputable, regulated broker—whether you are investing from the UAE or globally. You have two main options: you can buy the shares outright (spot or "cash" buying), or you can trade price movements via Contracts for Difference (CFDs), which allow leverage and short-selling. Each method offers distinct advantages for different types of investors. To help you make your first move, we've prepared a detailed broker comparison further down the page.

Cash buying

A cash purchase means you are buying actual Cisco Systems shares in your name, with full ownership and the right to receive dividends. Most UAE-friendly online brokers charge a flat commission per order—typically in the range of AED 15–20, or often around $5 per US stock order.

Example

The current Cisco Systems share price is $63.05 (approx. AED 231). With a $1,000 (about AED 3,670) investment, and including a commission fee of $5, you can buy around 15 shares of Cisco Systems. If the share price rises by 10% (to $69.35), your holding is now worth about $1,100.

✔️ Gain scenario: If the Cisco Systems share price increases by 10%, your investment value rises to $1,100.

Result: +$100 gross gain, or +10% on your investment.

Trading via CFD

CFD trading involves speculating on Cisco Systems’ price movements with leverage—without owning the underlying shares. You can profit both from rising and falling prices. With CFDs, fees typically include a spread (the difference between the buy/sell price) and overnight financing charges if you hold positions beyond one day.

Example

Imagine you open a CFD position on Cisco Systems with $1,000 margin and 5x leverage. This means your exposure is $5,000.

✔️ Gain scenario: If Cisco Systems’ price climbs by 8%, your position increases by 8% × 5 = 40%. That’s a gain of $400 on your initial $1,000 margin (excluding fees and overnight funding).

Result: +$400 gain, on a $1,000 outlay with leverage.

Final advice

Before you start investing, always compare brokers’ fees, account types, and trading conditions—these can greatly influence your returns. Whether you prefer buying shares directly for long-term growth and dividends, or active trading via CFDs with leverage, the right choice depends on your own financial goals, experience and risk appetite. To help you find the best fit, you’ll find a detailed broker comparison further down this page.

Our 7 tips for buying Cisco Systems stock

The latest news about Cisco Systems

Cisco’s Q3 FY2025 results reported double-digit revenue and profit growth, surpassing analyst expectations. For the quarter ending April 26, 2025, Cisco posted $14.1 billion in revenue, an 11% year-on-year rise, and a GAAP EPS of $0.62, up 35% from last year, with non-GAAP EPS at $0.96 (+9% y/y). These robust results were driven by a very strong performance in the Security segment (+54% growth), networking (+8%), and observability (+24%). Cisco’s earnings and revenue came above market consensus, providing confidence for investors seeking exposure to established technology leaders. Given the high demand for secure and reliable connectivity in the Gulf and broader MENA markets, the company’s strong results are likely to be viewed favorably by the analyst community in the UAE.

Cisco’s AI infrastructure orders exceeded $600 million in Q3, hitting its $1 billion annual goal a quarter early. The company reported that booming demand for AI data center solutions contributed to surpassing its infrastructure AI order target ahead of schedule, emphasizing Cisco’s positioning as a key enabler for region-wide digital transformation and the accelerated adoption of AI-powered solutions across the UAE. This strategic momentum in AI aligns well with national priorities in the Emirates regarding smart government, advanced manufacturing, and telecom transformation, supporting Cisco’s status as a preferred tech partner in local projects.

The acquisition of Splunk is already contributing positively to revenues and orders, ahead of planned synergies. Cisco noted that Splunk’s integration is progressing rapidly, with Splunk delivering a larger than expected positive impact both on new orders and growth in recurring revenues. This strengthens Cisco’s cybersecurity and observability offering, key domains for enterprise and government clients across the UAE where digital infrastructure security is a pressing concern. Investment in innovative cybersecurity positions Cisco as an even more relevant partner for regional organizations looking to meet evolving threat environments and regulatory requirements.

Regional expansion in EMEA, including the UAE, contributed an 8% year-on-year revenue increase, highlighting continued market strength. EMEA markets–encompassing the United Arab Emirates–showed robust business momentum, with revenues up 8%. Cisco’s ongoing investment in regional teams, partner enablement, and local cloud/security infrastructure aligns with the Emirates’ sustained investments in digital transformation and smart city initiatives. Cisco maintains high visibility in government, telecom, and enterprise projects across the UAE, a factor that supports earnings resilience and potential further market share gains.

The stock maintains a solid uptrend with a 1-year gain of nearly 37% and a moderate ‘Buy’ consensus from analysts. As of May 29, 2025, Cisco shares have appreciated almost 37% over the past twelve months, benefiting from strong financials and improving technical signals (with 53.6% of moving average signals bullish). The consensus target price sits above $69, implying 10% upside, and analyst sentiment remains moderately positive. Cisco’s reliable 2.6% dividend yield and ongoing share buyback program offer additional appeal for investors in the UAE seeking stable, high-quality exposure to global tech infrastructure leaders with a proven history of returning value to shareholders.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.